Committee advances amendment allowing part‑time municipal counsel to receive governmental immunity

The Senate Government Operations Political Subdivision Committee on March 3 favorably recommended third substitute House Bill 364, a bill that would allow municipalities to extend governmental‑immunity protections to outside counsel who perform legal work on behalf of a city or town when acting within scope of municipal business.

Representative Christopher explained the proposal as an optional tool for smaller cities and towns that hire contract counsel but cannot afford a full‑time in‑house city attorney. Jared Taney, legal director for the League of Cities and Towns, and Ryan Peterson representing American Fork told the committee that smaller jurisdictions often cannot attract counsel who will accept work without the same benefits and protections available to full‑time municipal attorneys. Testimony described prior litigation in which a contract city attorney and firm were sued in connection with municipal litigation; the suit was ultimately dismissed but created a substantial defense burden for counsel and municipalities.

Opponents — including Senator McHale in committee remarks — expressed concern that the bill could create an unfair carve‑out from ordinary liability expectations and that insurance currently covers such matters. Senator McHale said she would oppose the measure because she believed established insurance markets and contractor requirements provide sufficient protections and that extending governmental immunity to outside counsel would shift risk from firms to taxpayers.

After public testimony and committee debate, the committee voted to favorably recommend the third substitute. The chair announced that the motion passed with a 4–2 vote.